Industry News

MD of Baxi comments on the latest ECO and Green Deal figures

Paul Hardy, managing director, Baxi

Paul Hardy, managing director, Baxi, comments:

This week has seen the latest ECO and Green Deal figures published by the Government, along with a discussion around the future of ECO altogether. While there are some positive glimmers of hope, questions remain around what the Government and indeed the wider industry can do to ensure such schemes are a success.

Looking firstly at the figures, in terms of the 416 measures that are currently live, boilers are by far the most popular measures installed under the Green Deal – which is of course positive news for the heating industry. In comparison, just seven households have had cavity wall insulation installed (a far cry from the 8 million homes the Government noted would benefit at the start of the year) and just 37 homes have installed loft installation.

Additionally, the number of Green Deal assessments rose by nearly 20 per cent in September. This could indicate that homeowners are now grasping the benefits of Green Deal, though is more likely because of the colder weather, when thoughts are naturally turning to heating and home efficiency. It does however show that awareness about the Green Deal is rising, which can only be positive. While many newspapers reported that just 219 homes have benefitted from the programme, in fact over 1,000 homes have committed to installing energy efficiency measures. Additionally, 81 per cent of households who have had an assessment intend to install at least one energy saving measure.

While this could signal a step change, the Government is still nowhere near its target of 10,000 homes by the end of the year; even a significant jump over the Christmas period will not help the scheme become the success that the Government envisioned when it launched the ‘Green Deal With It’ campaign earlier this year.

Meanwhile, ECO, which energy companies must deliver, looks to have been a relative success, accounting for over 98 per cent of energy saving measures installed in British homes. Over 82,000 homes have benefitted from boilers under the affordable warmth scheme, while boilers also account for 95 per cent of cashback measures. Each month has seen a significant rise in ECO measures delivered, totalling over 300,000 to date. By March 2015, when the scheme is scheduled to come to an end, it will have helped thousands of British householders improve the efficiency of their homes.

There have, however, been rumours recently that the Government is looking at overhauling the entire system, with talk of the axing of green taxes and levies being reported in the press. The fact is that ECO is in place to create a legal obligation for energy companies to improve efficiency in homes, and actually costs households just £27 a year. Additionally, green levies only make up around 10 per cent of a customer’s total bill. While the current system is complex, it does serve a purpose, though we will learn more of the Government’s intentions when the Autumn Statement is announced.

As the UK braces itself for yet another cold winter, it is natural that thoughts will turn to home insulation and heating. Therefore, now is the time for the industry to act and encourage homeowners to benefit from the Green Deal and ECO. Installers can help by informing their customers about the benefits of high efficiency boilers, controls and insulation, and manufacturers by promoting the available schemes. It is also an important time for the Government to take stock of how successful its current energy efficiency schemes are, and look at what householders actually want – and understand – in terms of keeping their homes warm and efficient.